Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q4 2024 Earnings Presentation
15 slides from Hydrofarm's earnings presentation, Mar 5, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
Fo u r t h Q u a r te r 2 0 24 Earnings Presentation March 5th, 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements. This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materi
Slide 3: Business Overview
: « : Business Overview
Slide 4: Fourth Quarter and Full-Year 2024 Financial Results
Fourth Quarter and Full-Year 2024 Financial Results Net Sales within our Full-Year Expectations • Reached the midpoint of our full-year outlook range • Revenue streams were more diversified in 2024 compared to 2023 Significant Reductions in Adjusted SG&A • Effective cost savings and restructuring ac
Slide 5: Strategic Priorities
Strategic Priorities ✓ Drive Diverse, High-Quality Revenue Streams • Improve Proprietary Brand Mix • Targeted Investments and New Proprietary Product Innovations • Expand Non-US/CAN and Non-Cannabis Sales ✓ Improve Profit Margins • Increase Production and Efficiency in our Manufacturing Operations •
Slide 6: Financial Overview
F i n a n c i a l O ve r v i ew
Slide 7: Financial Summary
Financial Summary AGPM% refers to 'Adjusted Gross Profit Margin’. ASG&A$ refers to ‘Adjusted Selling General & Administrative expenses in USD’. Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. Please see appendix for reconciliation of GAAP to non-GAAP
Slide 8: Trend in AGPM% and Adjusted SG&A$
Trend in AGPM% and Adjusted SG&A$ Proprietary Brand Sales Mix and AGPM% Quarterly Adjusted SG&A Expense -16% 60% 30% -9% 24.4% 24.3% 23.4% 25% 58% -31% -24% -29% -20% 58% -11% -10% 57% 20% Proprietary Mix % 56% AGPM% 56% 15% 16.2M 14.6M 54% 9.6% 12.3M 12.0M 12.0M 11.6M 10% 10.7M 10.8M 52% 52% 5% 50%
Slide 9: Liquidity Remains Strong
Liquidity Remains Strong Balance Sheet Highlights as of December 31, 2024 USD millions Cash and cash equivalents $26.1 Total Debt $127.7 Net Debt $101.6 Cash Flow Highlights 3 months ended December 31, 2024 USD millions Net Cash From Operations $2.7 Capital Expenditures $(0.3) Free Cash Flow $2.4 Ca
Slide 10: Debt Details
Debt Details Un-utilized Revolving Credit facility and Covenant-light Term Loan that does not mature until 2028 Revolving Line of Credit ✓ $35 million Total Facility Size (effective in Q4’ 24) ✓ $0M Drawn and $13 million available as of 12/31/24 ✓ Adjusted Term SOFR Rate + grid-based spread ✓ Availa
Slide 11: Fiscal 2025 Outlook on Key Metrics
Fiscal 2025 Outlook on Key Metrics 2025 Outlook on Key Metrics Compared to 2024 • Increase proprietary brand mix 1 Net Sales Decline 10-20% • Improve revenue diversity • AGPM% benefit from proprietary brand mix and productivity Adjusted Improve Adjusted EBITDA 2 • SG&A reductions in professional & o
Slide 12: Appendix
Appendix
Slide 13: Branded manufacturer and distributor serving the CEA market
Branded manufacturer and distributor serving the CEA (Controlled Environment Agriculture) market Selling to a fragmented …that reaches an evolving Hydrofarm’s Value Proposition customer base… mix of end users Proprietary brands Specialty hydroponic retailers Approx. 35 brands, including: Commercial
Slide 14: Strong proprietary brand portfolio with solutions across key categories
Strong proprietary brand portfolio with solutions across key categories We have end-to-end category coverage through innovative, Consumables Durables well-recognized proprietary and preferred brands Nutrients Grow Media Supplies Lighting Equipment Illustrative margin benefit as we improve proprietar
Slide 15: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ in thousands) We define Adjusted EBITDA (non-GAAP) as net loss (GAAP) excluding interest expense, income taxes, depreciation, depletion and amortization, stock-based compensation including employer payroll taxes on stock
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